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Csr expenditure

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X company Manufacturing Laptops given laptops at cost to one trust. Whether margin (profit) given up construed as CSR expenditure ?
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According to section 135(5) , the company shall spend atleast 2% of the average net profit of the company made during 3 immediately preeceding financial years in every financial year in pursuance of CSR Policy of the Company.

First of all you have to check that expenditure spent by you comes under the purview of CSR Policy or not.

secondaly Net profit shall be calculated as per provisions of section 198.

as per section 198(3),(d) credit shall not be given for the profits from sale of any imovable property or a fixed assets of a capital nature comprised in a undertaking or any of the undertaking of the Company unless business of company consits weather wholly or partly of buying and selling of such property or assets

IMPORTANT NOTE : where amount of any fixed assets sold exceeds written down value, credit shall be given for so much of the excess as is not higher than than the difference between the orignal cost of that fixed assets and its written down value


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